Snap-on Incorporated reported lower third-quarter sales and profit as mobile van franchisees pared inventories, pressuring its tools business even as its industrial group grew year over year.
Net sales were $1.1837 billion, down 0.6% from the year-earlier quarter. Organic sales contracted 2.8%. Acquisitions contributed $25.6 million and favorable currency movements added $0.4 million, but those gains did not cover the $33.1 million reduction in organic sales.
Net earnings attributable to Snap-on came to $243 million, or $4.64 per diluted share. A year earlier, the company earned $265.4 million, equal to $5.02 a share. Operating earnings before financial services were $248.1 million, compared with $278.5 million. Snap-on said the prior-year figure included a $22 million benefit from a legal settlement.
Chairman and CEO Nick Pinchuk said inventory reductions were a significant drag on the Tools Group. He tied the pullback by mobile van franchisees to a sharp rise in diesel prices, while demand from technician customers remained steady.
The Commercial & Industrial Group was the exception to the declines. Its sales reached $404.3 million, up from $367.7 million, with organic growth of 7.4%; Snap-on described the group's performance as record-setting. The Tools Group reported $471.5 million in sales, compared with $506 million a year earlier, and organic sales declined 7%. Repair Systems & Information Group sales were $454.7 million, down from $464.8 million. Its organic sales fell 5.5%, mainly because of lower activity with original equipment manufacturer dealerships, the company said.
Snap-on filed the earnings release as an exhibit to a Form 8-K with the U.S. Securities and Exchange Commission on Oct. 22. The filing index lists Item 2.02, results of operations and financial condition, and Item 9.01, financial statements and exhibits. It identifies Oct. 22 as the report period and lists 12 documents.
For 2026, Snap-on expects capital expenditures of about $100 million and a full-year effective income tax rate near 22%.
